Chapter 13: Illegal Bargains Flashcards
Violations of statutes
The courts will not enforce agreements declared illegal by statute.
License
Formal authorization to engage in certain practices.
Regulatory license
Measure to protect the public interest.
Revenue license
Measure to raise money.
Wager (gambling)
Agreement that one party will win in the other loose depending upon the outcome of an event in which they’re only interest is the possible gain or loss.
Usery statute
Law establishing a maximum rate of interest.
Restraint of trade
Agreement that illuminates or tends to eliminate competition.
Covenant not to compete
Agreement to refrain from entering into a competing trade, profession, or business.
Covenant in sale of a business
The promise by the seller of a business not to compete in that particular type of business in a reasonable geographic area for a reasonable period of time is enforceable.
Covenant in employment contracts
An employment contract prohibiting an employee from competing with his employer for a reasonable period following termination is enforceable provided the restriction is necessary to protect legitimate interests of the employer.
Exculpatory clause
A provision excusing one party from fault or liability.
Unconscionable
Unfair or unduly harsh
Procedural unconscionability
Unfair or irregular bargaining
Substantive unconscionability
Oppressive or grossly unfair contractual terms.
tortious conduct
An agreement that requires a person to commit a tort is unenforceable.
